In the Forward Market,the Selling of a Currency at a Spot

question 9

Multiple Choice

In the forward market,the selling of a currency at a spot rate that is more than the forward rate is called _____.

• A) gaming the exchange rate
• B) cheating the bid-ask spread
• C) forward rate speculation
• D) selling at a premium
• E) selling at a discount

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Definitions:

Operating Segment

A component of a business that engages in business activities from which it may earn revenues and incur expenses, and for which discrete financial information is available.

Asset Group

A collection of assets that share similar characteristics and are accounted for together in financial reporting.

Production Phase

The production phase is the period in a business cycle when raw materials are converted into finished products.

Revenue Recognition

The principle in accounting that outlines the exact situations in which revenue is to be acknowledged and accounted for.